Second rank
The mortgage portion between 67% and 80% of property value.
The second rank (2nd rank) mortgage corresponds to the financing tranche between 67% and 80% of the property value.
Unlike the 1st rank (up to 67%), the 2nd rank must be amortised — meaning repaid — within a maximum of 15 years or before retirement age (65).
Example: for a property worth CHF 1,000,000 with an 80% LTV, the 2nd rank is CHF 130,000 (800,000 - 670,000). The minimum annual amortisation would be CHF 8,667 (130,000 / 15 years).
Some banks apply a different threshold (65% instead of 67%) for the transition to the 2nd rank.
Related terms
Amortisation
Gradual repayment of the mortgage principal.
LTV / Loan-to-value
Ratio between the loan amount and the property value.
Equity / Down payment
Personal funds required for a property purchase.
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